During the past weeks, many regions of Greece suffered from extreme heat, while the often uncontrolled fires destroyed tens of thousands of hectares of land.

Examining the possible consequences of said conditions on tourism, the economic inspection Handelsblatt observes that “so far Greece has experienced a summer of extremes: the rainiest June in recent decades was followed by the warmest July since the beginning of meteorological records. In Athens, the authorities prohibited access to the Acropolis during lunch hours, due to the high risk of heat stroke.

“We have always had heat waves, but they are now more frequent, more extreme and longer lasting,” says Christos Zerefos, supervisor of the Atmospheric Physics and Climatology Research Center of the Academy of Athens. 2023 will go down in history as a turning point – “the climate crisis is here”.

THE HB however, he points out that “travel agents are already reacting: many of them now offer trips to Greece from March to November. “The lengthening of the tourist season means less crowds and less environmental impact,” says Kostas Synolakis, president of the Hellenic Scientific Council on Climate Change.

The scientist does not expect an immediate impact on tourism, but he expects drastic long-term consequences: “It is estimated that the Mediterranean Sea could rise by about one meter by 2100”, says Synolakis. The Greek coasts will thus be faced with a “significant issue” erosion” as a result of human intervention and poor design of coastal facilities”.

“The Greek economic miracle”

With the Greek economy on a steady upward trajectory, the monthly business sentiment index rose to 111.1 points in July. “The climate could hardly be better,” writes his correspondent German Journalist Network (RND) in Athens, Gerd Heller, adding that “there is euphoria in Greece”.

Praising the economic management of the Mitsotakis government during the last four years, the journalist also emphasizes that “the policies of the conservative prime minister are business-friendly, but at the same time they also have a strong social character. Mitsotakis relieved workers by reducing income taxes and social security contributions and gradually increasing the minimum wage from 650 to 780 euros. As of 2019, the number of jobs increased from 2.2 to 2.6 million, while the unemployment rate decreased from 17.3% to 11.1%. The above progress was rewarded by the voters in the recent elections as well. […] Thus Greece, which was once considered impossible to govern, is today one of the most politically stable states in the EU.”

Regarding the long-awaited return of Greece to the investment grade, Heller explains that “something like this would not only improve the refinancing possibilities of the Greek state, but would also make it easier for Greek companies to borrow on more favorable terms and invest more money. This is the key to the sustainable return of the former crisis country. Investments increased strongly during the Mitsotakis government, but constituting 14% of GDP, they are still far below the European average of 23%”, concludes the correspondent.

“An end to the construction boom in Turkey”

On the other hand, the Turkish economy is facing important issues, with the value of the Turkish lira on a constant downward trajectory and inflation persisting at very high rates. The real estate sector is also affected by the difficult economic situation.

“After many years of a real building boom in Turkey, many holiday homes are now empty, even during the high tourist season. Added to this is the difficult economic situation, due to which many owners are now looking to sell. For those who wish to buy real estate, the conditions are therefore comparatively favorable,” writes the financial review Handelsblatt.

“There was a building boom in Turkey that lasted for years and was further fueled by a building “amnesty” in 2018. Because at that time, anyone who wanted to build a house did not have to wait for the relevant permit, but could obtain it electronically by paying an amount after construction. Many Turks, especially from rural areas, took the opportunity to build in fields, forests or other places outside the usual settlement areas and then legalize them in this way. But now this boom has ended in the present.In the first four months of 2023, sales were down 18.6% year over year.

[…] There are still homes – a small percentage of which are newly built – that were not legalized: for example because the quality of construction is simply too poor. In addition, there are buildings that were constructed in archaeologically important areas. And whoever acquires a property on such plots risks, even after the purchase and possible legalization, having to demolish the building following a court order,” the German newspaper concludes.